Member Info for Metamorphosis84

Debt from 575m to 650m, I guess it is all going to plan.

Enjoy your share dilution.

And how do new investors get brought on board without diluting existing shareholders?

Hi Eod, it is his view bit unfair to call it bias, unless your definition of bias is someone who's view doesn't conform to yours. The general consensus is that this share will be diluted. This mornings RNS itself said that cash will be raised. How do you think they are going to raise cash without dilution to the share price? And why is the BOD that you support waiting until next year to do it?

https://www.constructionnews.co.uk/companies/contractors/interserve/interserves-debt-could-reach-800m/10037536.article?blocktitle=latest&contentid=19855 This is seriously damming stuff. Well worth a read "In a market commentary note, Mr Rawlinson said Interserve’s problems were an issue for debt-holders themselves and could potentially see the firm taken off the stock market." Read that sentence again. If that is true, then this share is worthless.

Such is the peril of the debt you would have thought that new capital would be accepted whatever the cost.

They should have, but shareholders probably wouldn't have voted in favour of the remuneration and 125% bonuses if the RI had happened then.

Considering the low SP and market cap, is a debt for equity not more likely? An RI is not going to raise much now in the grand schemes even less if they are waiting until next year to go ahead. Besides, who would underwrite it? Remember Emerald bought the debt of the banks......

So there is a de-leveraging plan, that must be welcome news. But you are going to have to wait until 'early' 2019 to find out what it is! How very tantalising.

Desperate stuff trying to downplay what is quite obvious to everyone that can read and count. By the way happened to "Don’t worry - no more posts from me for a few months when this price has recovered" that was only last Tuesday.

Another incompetent basket case.

The price is only 12p away from the 4's there is a pretty good chance as some point this will revisit. Thats not to say it won't recover, but "the only way is up" attitude is just naive.

Using personal leverage to buy equities in a highly leveraged company was never going to end well unfortunately.

80p tomorrow Gregory?

No.

A review of todays events, very succinctly written. https://www.constructionnews.co.uk/analysis/cn-briefing/interserve-must-be-bold-and-fast/10037138.article " But one thing that is clear from speaking to industry sources is that their faith in the company’s ability to turn things around is starting to fade. Their main accomplishment thus far has been the expensive refinancing deal sealed in March. There have been few positive announcements since then. What we have seen is tinkering at the edges in the form of relatively small-scale disposals, pulling back from an increasingly competitive London market, and some internal operational savings. This would be fine for a company dealing with a moderate loss looking to sharpen up a bit. But it falls short of the radical action needed to address a net debt of around £600m, as well as financial covenants that require total borrowing to be cut by around £200m over two years. Recapitalisation through either a rights issuance or debt-for-equity swap must surely be seriously considered, while the sale of its profitable RMD Kwikform business with its tangible assets must be an option as well, something that was considered and then scrapped under former CEO Adrian Ringrose when EfW problems started to bite. Interserve has tried to limp on without much change, hoping it is big enough to weather the huge EfW provisions and mounting interest costs on its debts. But investors clearly don’t think this can go on much longer. One analyst told me most long-term investors would have exited and those still holding Interserve shares were either “in denial” about the company’s problems or holding on in desperate hope that things will be turned around. For its shares to plummet primarily on the back of rumour and speculation in recent days shows how shaky confidence in the company is. Time is nearly up for Interserve’s management to be clearer on the measures they are taking to address its slide so they can restore confidence. The contractor issued a statement today in response to media coverage of its share slide, saying its strategy was “on track” and it expected to see “significant operating profit improvement” this year. Will clients be happy to take this at face value? The current strategy is seeing shareholders head for the door."

Move along, nothing to see here.....

A retrace is likely, especially considering this share reached record levels recently. A dip back to the 400s would be very nice, a lot of people did very nicely buying prior to the bull run this spring and selling at the top.

It does look as though the sell off has paused for now. Can anyone think of a reason why IRV have chosen not to release an RNS addressing the BBC article?

Chickens have well and truly come to roost haven't they. The BOD kicked the can down with the road with the financing and ended up burdening themselves with debt in doing so. Shareholders then rewarded them with 125% bonuses. The BOD should absolutely release a statement explaining themselves as the market should not be relying on "sources close to" and such like.